Atlantic, Inc., held the following portfolio of securities on December 31, 2002 (the end of its first year of operations):

Market Value

Cost

(12/31/02)

Trading securities.

$18,700

$17,500

Available for sale securities

21,350

22,000

Held to maturity securities

15,000

15,700

No additional securities were bought or sold during 2003. On December 31, 2003, Atlantic’s securities had a fair market value of:

Trading securities

$18,250

Available for sale securities

22,500

Held to maturity securities

15,300

Prepare the entries required at the end of 2002 and 2003 to properly adjust Atlantic’s portfolio of securities.